Venable counsel Max Bonici will present the Virginia CLE program “Everything Has a Price: The Cost of U.S. Basel Endgame for the Main Street Economy” on August 25, 2023.
In July, the U.S. federal banking regulators jointly proposed extensive revisions to the regulatory capital requirements for midsize and larger U.S. banking organizations. The revisions are lengthy and would change the requirements for credit, market, operational, and derivative counterparty risk. Some of the revisions have long been expected, but others are novel or driven in response to the 2023 bank failures. Furthermore, the revisions are expected to materially increase the amount of capital that many larger banking organizations must hold, which may lead to a decline in bank lending and bank trading activities. Therefore, while the proposal is primarily of interest to the ~50 largest U.S. banking organizations, smaller banks and corporate customers will want to tune in to understand where the proposal may increase the cost of banking products and services or make them less available.